Question
1.) Among senior debt, subordinate debt, and preferred stock, which will be paid last in a bankruptcy? A.) Senior Debt B.) Subordinate Debt C.) Preferred
1.) Among senior debt, subordinate debt, and preferred stock, which will be paid last in a bankruptcy?
A.) Senior Debt
B.) Subordinate Debt
C.) Preferred Stock
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2.) The owners of unsecured debt do not have claims on any firm assets in an event of default
A.) True
B.) False
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3.) When convertible bondholders convert, their shares' value depend on the company's value because they now own a constant percentage of the company
A.) False, they will own a constant amount as they do when they hold the bond |
B.) False, they will own a various percentage of the company because the companys value changes over time. C.) True |
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